annual report 2002

puma.com
marketing
annual report 2002
content
Mission 5 Letter to Shareholders 7 Strategy 8
Intro to Phase III 10 Marketing 12 Retail 14
Italy 16 Shudoh 18 Complete-Serie 20 Motorsport 22
Serena 24 Co-op 26 Nuala 28 96hours 29 Platinum 30
Rudolf Dassler Schuhfabrik 31 Special Edition 32
Social & Environmental Responsibility 34
Launched via a gallery exhibition at London’s Old Truman Berwery, PUMA’s Limited
Edition Thrift collection, crafted exclusively from second hand materials, sold out
within 24 hours.
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Mission
Brand
“to be one of the most desirable sports brands in the world”
Corporate
“to be the first truly virtual sports company”
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Letter to Shareholders
A quick look at PUMA’s product line provides clear
indication that we have not only built upon existing
collections, but have also successfully broadened our
offerings to encompass new business areas. As such,
PUMA’s expanded 2002 Shudoh Collection has set the
standard for technical innovation for football. Within the
running universe PUMA has made equal strides via the
Complete Collection. Encompassing CELL technology
Complete encompasses the highest level of functionality
and comfort possible. Having broadened its portfolio of
partnerships, PUMA’s Formula-1 initiatives now span five
teams and provide a strong catalyst for growth via
lifestyle adaptation of racing products. Our yoga-inspired
Nuala line, developed in cooperation with Christy
Turlington, continues to offer flexibility and style by
lending itself perfectly to the needs of the active woman.
A robust offering on luxury goods rounds out PUMA’s
product range.
Dear Fellow Shareholders,
2002 was by far the most successful year in PUMA’s
history. As a company we achieved record sales and,
more importantly, record profitability. As a brand we
added gleam to our image by delivering on our promise
of targeting innovative products and marketing concepts
to our global clientele. In doing so we have elevated our
brand awareness and established a solid platform for
future development and growth.
We have successfully captured the essence of
Sportliefstyle through a long-term marketing agreement
with Jamaica, giving PUMA a foothold at all major Athletic
Championships as well as the Olympic Games.
Celebrating Cameroon’s team at the World Cup we
developed a sleeveless shirt that succeeded in turning
heads while also fusing fashion with sport. Our recent
signing of the Italian National Football Team underscores
our ongoing commitment to professional sports and will
provide a strong extension to the creative and alternative
approach witnessed in 2002 with Cameroon’s National
Team. On the tennis court, sporting PUMA’s signature
sleeveless shirt, Serena Williams won every Grand Slam
she played and captured the number one ranking from
her sister.
Although PUMA’s success cannot be attributed to any
single source, several interwoven factors have played a
significant part. At the heart lies the contribution of each
of our Team Members. Their commitment and innovative
approach to realizing our ultimate goals has been
paramount. Concurrently, our dedication to “mixing it up”
has allowed us to stay at the forefront of the industry and
take a deeper root in the hearts of our consumers.
Looking forward, we realize that the key to our continued
success lies in our speed and agility. We will continue to
make strategic investments to always keep our brand
fresh and innovative. With the continued support of our
consumers, shareholders, partners, and team members
we are confident that we can successfully tackle the
challenges that the future brings with it.
Best regards,
Jochen Zeitz
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The Company
Strategy
Brand
In 2002, we took significant steps toward our goal of
being the most desirable Sportliefstyle brand in the world
by fusing the creative influences from the world of sport,
lifestyle and fashion. To achieve this end, our brand
template
emphasizes
PUMA’s
distinctiveness,
individualism, spontaneity, internationalism and sporting
heritage. An important part of our brand strategy is
maintaining vigilant watch over our distribution channels,
ensuring that we maintain the high level of desirability
necessary for sustainable growth. Concurrently, in areas
where licensee growth is desired, we will provide solid
guidance and strict alertness to make certain that the
brand’s objectives and direction are maintained.
Corporate
At the heart of our company strategy is the focus on
continuously pursuing a more flexible and efficient
organization that is fit to thrive in an increasingly dynamic
and fast-paced industry. To this extent, over the course of
the past few years, we have decentralized our structure
on the way to creating the first truly virtual sports
company.
enable PUMA to realize efficiencies in areas such as
product lifecycle, management and sourcing. The end
result should help reduce lead times and costs, while
concurrently fostering improvement in quality. These
advances are part of a constantly evolving process in
which our corporate strategy and structure lends us
competitive advantage.
To help manage the matrix organizational structure, we
have created the Group Executive Committee, which
incorporates the functions of brand management,
product, finance, growth management, legal and
organizational structure into one core body. The resulting
cross-functional communication further enhances PUMA’s
corporate agility. Implementing this nimble structure will
Complimenting the Board of Management, consisting of
Jochen Zeitz, Martin Gaensler, and Ulrich Heyd, the
additional members of the Group Executive Committee
are: Antonio Bertone (Brand Management), Peter Mahrer
(Central European and International Sales), Dieter Bock
(Finance), and Klaus Bauer (Operations and Human
Resources).
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The Company
Das Unternehmen
Intro to Phase III
Striving to reach even greater heights, 2002 marked the
beginning of PUMA’s Phase III growth plan. Phase III, a
continuation of the two preceding stages that focused on
achieving a solid financial and brand platform
respectively, aims to further explore the potential of the
brand by generating desirable and profitable growth.
Although desirable growth continues to be the preliminary
goal of the company, PUMA plans on tapping into a
significant part of the potential annual sales of €2 billion
during Phase III. Efforts to achieve average double-digit
sales growth on a group-wide level through 2006 will be
supported by strong investments in R&D, Marketing and
Retail.
everything we do from marketing initiatives to our
products. Tied to our long-term goal is the continued
expansion of our retail business to ensure that this
venture generates 10% of corporate sales by the end of
Phase III. The development of a web-based supply chain
management system will also help achieve greater
operational efficiencies and create a foundation for
delivering on the company’s growth objectives. Adding a
human dimension to the growth equation, PUMA’s Phase
III plan also supports the broadening of the company’s
leadership structure through the introduction of a Group
Executive Committee, consisting of the Board of
Management as well as four Global Functional Directors.
To reach our Phase III goals we will need to remain
focused on the long term. Our attention will be on
improving our distribution strategy, continuing to uniquely
combine sport with lifestyle and constantly innovating in
Group Executive Committee
Martin Gänsler
Peter Mahrer
Antonio Bertone
Jochen Zeitz
Dieter Bock
Klaus Bauer
Ulrich Heyd
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The Company
Marketing
In 2002, PUMA focused on marketing and advertising
consistent with our brand strategy - mixing it up. Building
up to the 2002 World Cup, we launched the Shudoh Sushi
campaign, which presented our unique take on soccer.
With TV spots featuring English Premier League stars
Nicholas Anelka and Robert Pires doing battle in a Shudoh
Sushi bar, we created a memorable campaign that was
distinctively PUMA. Similarly, our newly designed
sleeveless jersey for the Cameroon national team turned
heads and demonstrated on a global platform that even
when it comes to something as traditional as a football
jersey, PUMA will find a way to mix it up. In the fall, we
continued to create headlines with Serena Williams’ cat
suit debut at the US Open, as Serena generated cause on
her own by making the Open her third Grand Slam title of
the year.
The Jamaican Federation represents one of the latest
additions to the PUMA team, and will be a focus of our
marketing efforts in 2003, leading up to the World
Athletics Championships. Jamaica perfectly embodies
sport and lifestyle, and instantly conjures images that
personify the PUMA brand. We will also continue with our
Travis 199 campaign, featuring X-Games and Gravity
Games motocross gold medallist Travis Pastrana. Also
featured in 2003 will be an updated version of the
successful PUMA Lifestyle campaign – “Originals.” PUMA’s
presence in the world of professional motor racing will be
boosted this year as several new agreements bring the
company’s sponsorship activities to a total of five Formula
One teams, as well as the World Rally Championship.
PUMA also mixed things up outside of the stadium in
2002. Our Thrift collection enjoyed a successful launch by
appearing in a gallery exhibition in London in September.
The 96 Hours concept, an innovative approach to clothing
for the international business traveler, was featured in
several prominent magazines and brought a more
contemporary and sophisticated dimension to PUMA’s
marketing endeavors.
Most recently, we shook the football world by announcing
that it had signed the Italian National Football Team. The
agreement, which makes PUMA the official supplier to all
associated teams, took effect on January 1, 2003 and
provides the perfect platform for displaying PUMA’s
commitment to sports with style. By fusing PUMA’s strong
soccer heritage with the impressive skills of three-time
world champion Italy, PUMA has once again bolstered its
presence in professional sports with a head-turning
partnership.
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15
The Company
The Company
General Overview
Retail
On the retail front, we have continued with our companyowned sports boutiques expansion. During the year PUMA
opened stores in eight major metropolitan cities. These
new locations complement our already strong roster of
concept stores and bring the total number of PUMA sports
boutiques to sixteen, thereby surpassing our goal of
having fifteen stores operational by the end of 2002.
By opening boutiques in key retail locations we have
taken an important step in the profitable evolution of the
brand. The stores offer unprecedented opportunities to
maximize our brand experience by showcasing PUMA
products in an innovative manner with our traditional
forward-looking nuances. By forging closer relationships
with our target consumers, and meeting them where they
shop, concept stores also function as testing grounds for
new and fresh ideas. Most importantly, concept stores are
created with the underlying goal of becoming a profitable
extension of the brand.
Looking forward, PUMA’s retail strategy is another
cornerstone of our company’s Phase III expansion. Not
only does our retail development help bring us closer to
our consumers, but it also supports our retailers by
creating a platform on which the brand is expressed in its
purest form.
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The Company
Italy
After rattling football’s foundations at the World Cup with
Cameroon’s attention-grabbing sleeveless-shirt, PUMA
ended 2002 with an equally strong statement. In the
year’s closing weeks, PUMA announced a long-term
agreement with the Italian Football Association (F.I.G.C.)
in which the three-time World Cup winner and PUMA have
teamed up to begin a new era in football history.
The agreement, which officially commenced on January
1, 2003, will serve as a basis to strengthen the boundaries
traditionally associated with promotional sports
partnerships. In the partnership PUMA becomes the
official supplier of all on field, sideline, training and
representation apparel, accessories as well as a selection
of footwear offerings. By fusing PUMA’s innovative style
with Italy’s elegance, flair and emotions, the partnership
positions PUMA to recapture leadership in the dynamic
Football arena by doing it our way!
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The Company
Product
Shudoh
Having just completed its second season, PUMA’s Shudoh
line continues to maintain its position as one of the
world’s most technologically innovative soccer collections.
Shudoh, derived from the Japanese word for “the way to
become the master of soccer,” reflects PUMA’s
commitment to exceeding the needs of professional
athletes by creating products that encompass form,
function, fit and power.
exciting colorway. The Shudoh incorporates the technical
features of a performance running shoes in a pro football
boot, thus combining a glove-like fit and minimal weight
with stability, traction and shooting support. The Shudoh
accessories line was augmented by the addition of the
dimpled soccer ball, high-performance shin guards and
injury-preventing goalkeeper gloves.
In 2002 the Shudoh signature boot was improved to
incorporate a fine-tuned upper construction with a new
shudoh
No Limits. Only Choices.
Radical Quickness, Constant Power, Real Customization
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The Company
Product
Complete-Series
The Complete Series continues to develop performance
trainers for runners with complex needs. Developed in
collaboration with experienced athletes, Complete Series
shoes have undergone extensive laboratory testing to
assure the highest integrity of the line. Complete shoes
feature PUMA CELL technology, which allows gravitational
forces to absorb the pressure of each stride. By retaining
90% of its original effectiveness throughout the life of
the shoe, the chances of injury are greatly reduced. Using
state-of-the-art materials from GOODYEAR and 3M, PUMA
launched the Complete Premise, a durable running shoe
for those looking for a high-mileage trainer. Complete
products continue to showcase PUMA’s dedication to
equip performance-conscious athletes as they master
their form and speed.
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The Company
Product
F1 and Motorsport
Focused on bolstering its arsenal of statement
partnerships, PUMA’s 2003 motorsport lineup includes
Formula One teams Sauber Petronas, Jordan Grand Prix,
Minardi, Jaguar Racing and Panasonic Toyota. Rounding
out PUMA’s partnerships, we have signed a new deal with
World Rally Championship, and enjoy the continued
cooperation of Porsche and freestyle motocross champion
Travis Pastrana. Each of these agreements provides PUMA
with an additional foothold in the broad motorsport
segment. Jointly these partnerships offer PUMA an
invaluable opportunity to outfit teams and crews with
footwear, accessories and apparel that mirrors the specific
needs and challenges associated with these precision
sports. Statement products such as the CirCat and Speed
Cat marry form with function and bring the look and
styling of motorsport to life’s daily race.
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The Company
Product
Serena
Sporting her renown PUMA Catsuit among others, top
seeded women’s tennis player Serena Williams turned
heads and set new standards for on-court attire. The
collections showcased at the Grand Slams incorporated
high performance and innovative textiles, as well as
footwear that united performance with panache. Serena
aided in the collection’s design process thus ensuring that
our products remained true to the athlete’s needs.
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The Company
Product
Co-op
PUMA continues to set the benchmark in co-op ventures,
pushing boundaries and generating interesting products
that appeal to unique markets. This year, PUMA and
Yasuhiro Mihara teamed up for a third time to create a
new collection of avant-garde shoes. The PUMA/Mihara
partnership focuses on fusing sport with fashion. Each
collaborative effort with Mihara has allowed PUMA to
deliver innovative, high fashion designs and has propelled
the brand to markets and consumers previously
untouched. PUMA’s long-standing relationship with Jil
Sander has been continued with a new collection of men’s
and women’s shoes, highlighting the strong influence of
Sportlifestyle in the world of fashion.
In cooperation with Marc Jacobs, Nuala recently
introduced the Christy bag, a limited edition yoga mat bag
that carries the signature styles of long-time friends
Christy Turlington and Marc Jacobs. Christy bag proceeds
will go to CANCERcare, the oldest and largest national
social service agency solely dedicated to providing free,
professional support services to individuals afflicted with
cancer.
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The Company
Product
The Company
Product
96hours
PUMA’s 96 Hours collection was developed with the global
jetsetter in mind. Using only the finest materials and
craftsmanship, the set fuses the necessities of
functionality and style. We have created a completely
modular apparel concept that allows the user to move
seamlessly from hour to hour and day to day. The single
elegant case contains 26 individual pieces in a clean color
palette of black, white and coal that subtly come together
Nuala
Often defined as “contemplative sport”, Nuala is the
product of an organic partnership that reflects Christy
Turlington’s passion for the ancient discipline of yoga and
PUMA’s commitment to create a superior mix of sport and
lifestyle products. Using yoga as its foundation, Nuala
seeks synergy between the outer and inner beings and
individual and collective experiences. Nuala is more than
a line of yoga-inspired active wear; it is a building block
for limitless living aimed at providing fashion-conscious,
independent women comfort for everyday life.
to suit the needs of the individual. Included in the
package is a compact performance sport shoe, allowing
for the integration of leisure with business. Focused on
the fact that the typical international business trip lasts 96
hours, four days and five nights, the 96 Hours collection
frees the traveler from the bounds of time and distance
and showcases PUMA’s ability to make a high-end
functional statement.
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The Company
Product
The Company
Product
Platinum
Available at high-end boutiques and department stores,
the PUMA PLATINUM collection continues to break new
ground in the men’s premium footwear arena. PLATINUM
traditionally pulls influences from PUMA’s sport heritage,
and recently has drawn inspiration from the prestige of
timeless sports like polo, yachting, and auto racing.
PLATINUM provides consumers with sophistication and
exceptional craftsmanship, with a hint of PUMA’s unique
modern styling.
Rudolf Dassler Schuhfabrik
The Rudolf Dassler collection recalls the innocence and
timelessness of Sport through its clean, simple, and
provocative styling. The Dassler footwear range is rooted
in the heritage of soccer, tennis, running and boxing
shoes of the late 1940’s and 50’s. Our collection
represents a time when people played sports for
enjoyment and without underlying financial motives.
Made of the finest leather and suede, the Dassler
collection keeps the materials and colors natural, but adds
modern technology in the sole to reduce weight and
increase comfort.
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The Company
Product
Special Edition
PUMA’s Special Edition Collection is designed for the true
trendsetter – a PUMA fanatic that desires both originality
and exclusivity. Digging back through our archives, PUMA
launched two Special Edition apparel products in 2002,
the Knitted Suit and the Letter Suit. Both items were
produced in extremely limited quantities and selectively
allocated to our concept stores and other notable
retailers.
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The Company
Social & Environmental Responsibility
PUMA, in its capacity as a global player in the sporting
goods industry, feels an especially high degree of
responsibility for the protection of social and
environmental standards. This responsibility is reflected in
our business practices. As such, we have taken a leading
role in the development of a sustainable social
accountability and environmental standards policy. The
policy’s goal is to establish an open dialogue between our
partners to ensure that our corporate activities are
founded on the principles of sustainability, accountability
and transparency.
The S.A.F.E. (Social Accountability & Fundamental
Environmental Standards) policy has become the
cornerstone in PUMA’s long-term corporate responsibility
action plan. The policy’s two-pronged approach
guarantees that the needs and rights of all persons
employed with PUMA and its partners are respected,
while also implementing benchmarks that ensure that
production standards, with regard to the environment,
are continuously upheld.
By enveloping our partners in a constructive dialogue, our
S.A.F.E. audit teams maintain a symbiotic relationship
with all vested parties. The ultimate goal is to create
strategic partnerships that lead to the mutual advance of
employees, associates and PUMA as a whole. As such, we
realize that becoming the most desirable Sportliefstyle
brand encompasses more than just financial success.
During 2002 significant steps in the fields of
environmental and social affairs were realized. The
auditing of all licensee factories in accordance with
S.A.F.E. standards has been successfully completed. Indepth training sessions have been arranged for all of
PUMA’s vendors. Furthermore, to ensure that the target of
PVC-free product-delivery by F/W 2003 is achieved, PUMA
has undertaken significant steps in its production
practices. Our efforts to substitute organic solvents with
organic solvent-free systems in footwear production have
also been intensified.
PUMA’s unwavering dedication to the principles laid out in
the S.A.F.E. policy has earned us the 2002 Corporate
Ethics Award from the European Business Ethics Network,
Germany. The award celebrates the organization-wide
processes that have been set into motion that promote
structurally effective corporate ethics projects and
corporate policy. By winning the award we have deepened
our commitment to upholding the highest possible
standards both now and in the future.
For more information please refer to the newest version
of PUMA’s environmental and social report that will be
published in 2003.